Banks ($DJUSBK) cannot catch a bid. Despite the market's attempt at a rally (finally!), no one appears to be intrigued by bank prospects. We saw an afternoon rally on Wednesday and it's being followed up with a decent rally today on the heels of European Central Bank President Mario Draghi's comments this morning about needing to review the ECB's policy stance in March. He added that the ECB has "plenty of instruments available" and that sparked a rally in U.S. futures and has carried over into the day's trading. Unfortunately, the market is not believing those instruments will have any positive impact on U.S. banks as the recent breakdown continues and losses mount. This is not the kind of action in banks we want to see and suggests we have not seen a long-term market bottom. Rather, it's likely to be temporary. Check out the failure of banks to rally today:
Volume has been very heavy as distribution appears obvious.
Happy trading!
Tom
